What To Know About Covering Interruptions to Business

5/9/2020 (Permalink)

Facility flood in Clifton, CO

Most people purchase various types of insurance to cover their losses due to a particular event. For example, homeowner’s insurance can cover losses or damages to your home in the event of a fire or other natural disasters. Flood insurance can cover your home or business due to damages from flooding, but as a business owner, what protections do you have to cover the interruption in your business in the same situation? If your operations in Clifton, CO, were halted after experiencing large water damage, how can you cover the lost income as you repair and recover? It is strongly recommended that you purchase interruption insurance coverage.

What Does Business Interruption Insurance Cover?

As part of a property insurance policy, business interruption coverage helps you cover loss of income as you repair and recover from damages due to flooding or a broken pipe. This coverage usually includes:

• Lost profits that would’ve been made, usually calculated based on past financial statements
  
• Expenses still being incurred, such as certain utility bills
  
• Costs associated with temporary relocation (If you can relocate for the time being, your policy would cover expenses associated with moving and working in the interim location, such as rent.)
  
• Costs to provide training and commission, including costs to train for use of replacement equipment
  
• Reimbursement for miscellaneous operations costs above any fixed expenses during restoration
  
• Losses associated with government-enforced closures, including curfews and location closures that impact how you do business during this recovery period
  
  

How Can I Lower My Interruption Insurance Claim?
You can shorten the time it takes to recover from flooding or other major water damage by reaching out to a team of professionals who can respond immediately with the right equipment and proven techniques. The sooner the water cleanup operations is complete, the sooner your organization can get back to work, lowering your overall business income insurance claims.